Honorable Earl Deveaux, Minister of Environment of the Commonwealth of the Bahamas,
Honorable Ministers of Government from participating countries,
Ambassador Ned Siegel, Ambassador of the United States of America to the Commonwealth of the Bahamas,
Reverend Patrick Paul, President of the Bahamas Christian Council,
Mr. Oscar Spencer, Representative of the Inter-American Development Bank in the Commonwealth of the Bahamas,
Representatives from the Inter-American Institute for Cooperation on Agriculture,
Ms. Juliet Phillip, OAS Country Representative in the Commonwealth of the Bahamas,
Ambassador Brenda Johnson, USA Ambassador to Jamaica,
Members of the Diplomatic Corps,
Representatives of regional and international organizations,
Colleagues from the Organization of American States,
Representatives from the local, regional and international business community,
Members of the media,
Ladies and Gentlemen,

It is a great honour for me to speak at this seminar addressing the Caribbean region’s common challenges in sustainable energy. This issue and the manner in which it is addressed will have long lasting implications for the economic and social development and stability of this region.

I would like to commend the spirit of positive collaboration between the OAS Department of Sustainable Development, the Inter-American Development Bank, the Inter-American Institute for Cooperation on Agriculture, and the Department of State of the United States that has made this event possible.

I also take this opportunity to thank the Government of the Commonwealth of the Bahamas for providing the venue as well as for the assistance in organizing this important conference.

The Organization of American States has a long-standing interest and involvement in sustainable energy issues. Over the past decade in particular, the OAS, through its Department of Sustainable Development has designed and implemented several critical programs and projects that have helped to build the capacity of member states to develop a diversified and sustainable energy portfolio. I am pleased to reaffirm our commitment to continue support member states in designing programs and projects on renewable energy, energy efficiency and bio-energy in the Caribbean.

This commitment should be placed in the context of the emergence of a New Sustainable Energy Order in our Hemisphere and the need to design a new development paradigm in the Hemisphere – one with less poverty, greater prosperity, greater social equity and a cleaner environment for all. It is clear that no country can do it on its own, even with an enormous resource potential.

To achieve these objectives we all –government, private sector and civil society at large- will need to pool resources, develop synergies and work together to support the needs of the Caribbean in this emerging sector.

To achieve these objectives we also will need member states of the OAS and CARICOM to work together to strengthen the collaborative efforts among themselves at a bilateral level, and we have seen some good examples of these efforts in the past years.

To achieve these objectives we certainly will need the political commitment at the highest level, decisive leadership both in the public and private sector to make the right choices and to allocate required human and financial resources.

At the OAS General Assembly in Panama in June 2007, our member states approved the “Declaration of Panama on Energy for Sustainable Development”. The Declaration of Panama notably focused on the importance of energy security in the Hemisphere, as an essential component of sustainable development and poverty reduction, as well as the importance of cleaner and renewable energy in the context of climate change and a more balanced, efficient and sustainable energy matrix.

At a subsequent Meeting in March of this year in Washington DC, Member States agreed to hold sub-regional meetings to further discuss the energy issues raised in the Declaration of Panama from a sub-regional perspective, and to focus more specifically on local needs.

The critical importance of today’s event in developing a successful energy strategy for the Caribbean region that will benefit current and future generations cannot be over-emphasized. Soaring petroleum prices, combined with the region’s high dependence on imported fuels, are taking a huge toll on the region’s fragile economies.

For example, in 2004, the Caribbean region imported about 163 million barrels of oil at a cost of $ 6.5 billion. At current crude oil rates, the same amount of petroleum will cost our countries more than 24 billion dollars if we take into account growth in energy demand. In other words, energy costs have risen by 370% in less than four years.

At the current rate, many countries will spend almost all of their export earnings from commodities such as bananas, sugar and coffee and from services such as tourism to purchase petroleum products. Indeed it can be argued that if Caribbean countries had not developed service exports such as tourism and off-shore financial services they would not be able to pay their energy bills. This scenario strikes at the heart of the security of the region and demands immediate action.

Energy analysts claim that several factors are responsible for the increase in fossil fuel prices. They include: rapidly increasing global oil demand, particularly from China and India; continuing political unrest in the Middle East; political and social instability in some major exporting countries; and/or insufficient refining capacity among OPEC countries.

There is growing consensus that market speculation is also helping to boost fossil fuel prices. Whatever the cause or causes, it is clear that the social and economic hardship being created by the current energy crisis is not likely to ease significantly any time soon.

There is no doubt that the situation could have far-reaching social, economic, financial and I may add political consequences if the issue of energy security is not addressed swiftly and decisively by the region’s leaders. It is clear that the time for concrete action with achievable targets is now.

The situation is even grimmer when viewed from an environmental perspective. Scientists now predict with a high degree of probability that carbon dioxide emissions caused by the consumption of fossil fuels is destroying the region’s habitat at an alarming rate.

According to the assessment released in late 2007 by the Intergovernmental Panel on Climate Change (IPCC), warming of the climate system is unequivocal. The air and the oceans of the planet are getting warmer, polar icecaps are melting and sea levels are rising. In the Caribbean – a region already annually battered by hurricanes- tidal increases are expected to exacerbate flooding, storm surge, erosion and other coastal hazards, thus threatening vital infrastructure, settlements and facilities that support the livelihood of the region’s communities.

If the current rate of carbon dioxide emissions persists, by mid-century, climate change may reduce the region’s water resources to the point where they might be severely strained to meet demand during low-rainfall periods.

According to another report published in June 2008 by the World Conservation Union (IUCN), warmer seas and a record hurricane season in 2005 devastated more than half of the coral reefs in the Caribbean. As you are aware, coral reefs are an important part of the marine ecosystem and support about 25% of all marine life. This therefore has real and significant implications including impact on the region’s fishing industry

Today the region depends on fossil fuels to supply 93% of its energy needs. This is clearly unsustainable. We must now engage in a process of creative thinking that will lead to a change in the energy consumption ethic of Caribbean countries and peoples. And here again, I urge Caribbean nations, politicians, legislators, policymakers, private sector and civil society to act with a sense of stewardship and urgency. In my view it is not only Governments and elected officials that are responsible for ensuring that new directions are developed, it is a responsibility of all in society.

Sustainable development must be the governing principle of the region’s energy policy. Experience has demonstrated that energy serves as a tool for progress. The region needs to gain access to modern and reliable technologies that provide for the needs of its expanding economies and growing populations.

Energy efficiency is also an issue which should not be overlooked. Energy efficiency must be placed at the front and centre of the policy debate in our region and should be considered as an integral part of the objective of reducing the dependence on fossil fuels and saving precious foreign exchange.

Forward-looking energy policies must be accompanied by a consideration of the region’s endowment of renewable energy resources and the potential for energy efficiency as an integral part of the objective of reducing the dependence on fossil fuels.

I am pleased to share with you that the OAS is working with Member States of the Caribbean region to support the development of renewable energy on a regional basis. For example, by joining forces with the Global Sustainable Energy Islands Initiative (GSEII), the OAS has been able to work with several Caribbean countries on the development and implementation of sustainable energy policies.

In this regard, I am happy to report that the OAS has been able to successfully negotiate additional funds to extend the GSEII programme. The new initiative, funded by the European Union will allow for the inclusion of The Bahamas and members of the Organization of Eastern Caribbean States (OECS) in this programme.

In the field of biofuels, the OAS Department of Sustainable Development launched a feasibility study early this year to determine the potential for the development of the cellulosic ethanol market in Belize. The OAS is also supporting the efforts of Caribbean countries in harnessing their natural resources for electricity generation.

Just a few weeks ago, a milestone in geothermal exploration was reached on the island of Nevis, when the first commercially-sound reservoir jetted steam from a depth of 1,100 meters. These examples prove that there is a huge potential for renewable energy in the region. Nevertheless, a lot remains to be done to ensure energy security in the Caribbean.

In order to find long term solutions to the issue of energy security, both the Caribbean region as well as multilateral organizations must join efforts. In that regard, the establishment of the Caribbean Renewable Energy, Energy Efficiency and Bioenergy Action Program, also known as CREBAP, is highly commendable. The CREBAP partnership establishes a robust framework for the implementation of sustainable energy initiatives, projects and programs in the countries of the Caribbean. CREBAP was signed in Georgetown, Guyana on August 6, 2007 and I would hope that, beyond Guyana, other CARICOM countries would consider signing on to this action program. The OAS has allocated substantial funding and I understand that our partners of the IDB have also committed funds, so that a program of technical assistance to those who have signed on can be established and implemented.

I would like to conclude by saying that this seminar offers an important opportunity to address a common approach to the issue of energy security. Let us use this occasion to rise to the challenge before us. We must take urgent and concerted action to ensure that energy uncertainty does not throw our region’s march toward a bright, prosperous future into reverse.

Together, we can find solutions that will pave the way for energy security and sustainability in the Caribbean: one that does not create hazards to human health and the environment; one that complements the region’s food security efforts; one that addresses the need for accelerated human resource development; and one that is supported by sound research and development capabilities.

I wish you fruitful discussions and I look with interest to the concrete follow up to this meeting.

Thank you.